During your marriage, it’s possible that you and your soon-to-be ex-spouse took on joint credit card debt. While this may have been necessary for a number of reasons, it can pose a challenge during the divorce process.
In a gray divorce, just the same as any other, you want to minimize your debts and obtain as many assets as possible. This should lead you to consider your many options for dealing with joint credit card debt:
- Leave it in the past: If possible, find a way to pay off joint credit card debt before the divorce process begins. For example, both of you may agree to pay off the debt with money from a savings account.
- Use balance transfer credit cards: If paying off the balance isn’t an option, split the debt evenly onto separate credit cards. This allows you to tackle the debt in the manner that’s best for you.
- Cancel all joint credit cards: Even if you trust the other individual to do the right thing, they may give in to temptation and use the card for expensive purchases. If this happens, it’s possible you could be on the hook for half of the amount.
There is a lot to think about in a gray divorce, with matters of asset and debt division at the top of the list.
If you have joint credit card debt, consider the many steps you can take to deal with this without further complicating your situation. By moving forward in the right direction, you can protect your legal and financial rights.